As of December 31, 2012, total cash and cash equivalents was $4.5 million and working capital was $1.3 million, compared to total cash and cash equivalents of $4.2 million and working capital of $1.3 million as of September 30, 2012.

Revenue for the first quarter of fiscal 2012 was $3.8 million, compared to $3.5 million in the preceding quarter, and compared to $4.8 million during the same period in fiscal 2012. Gross margin in the first quarter of fiscal 2013 was 70.7%, compared to 35.9% in the preceding quarter, and compared to 69.5% during the first quarter of fiscal 2012. Operating expenses totaled $2.8 million, compared to $2.9 million in the preceding quarter, and $3.3 million during the same period in fiscal 2012.

Net loss for the first quarter of fiscal 2013 was $45,000, or a loss of $0.00 per share, compared to a net loss of $1.6 million, or a loss of $0.09 per share in the preceding quarter, and compared to a net loss of $9,000, or a loss of $0.00 per share during the first quarter of fiscal 2012.

Jeremiah Fleming, AltiGen's President and Chief Executive Officer, stated, "We are pleased with the increases in revenue and cash, on a quarter over quarter basis. Our focus is squarely on continued improvements in both areas for remainder of this fiscal year and beyond."

Conference CallAltiGen will be discussing its financial results and outlook on a conference call today at 2:00 p.m. Pacific Time (5:00 p.m. ET). The conference call can be accessed by dialing (877) 407-8031 (domestic) or (201) 689-8031 (international). A live webcast will also be made available at http://www.altigen.com. To access the replay, dial (877) 660-6853 (domestic) or (201) 612-7415 (international), account #286 conference ID #408379. A web archive will be made available at www.altigen.com for 90 days following the call's conclusion.

About AltiGen Communications AltiGen Communications, Inc. (OTCQX: ATGN) is a leading provider of 100% Microsoft-based VoIP business phone systems and Unified Communications solutions. Having more than 10,000 customers around the world, AltiGen solutions are designed for high reliability, ease of use, seamless integration to Microsoft infrastructure technologies, and are built on a scalable, open standards platform. AltiGen's worldwide headquarters is in Silicon Valley, California, with international operations based in Shanghai, China. Local sales, service and support are provided by AltiGen's worldwide network of over 300 certified partners. For more information, call 1-888-ALTIGEN or visit the web site at www.altigen.com.

Safe Harbor StatementThe Forward-looking statements contained in this press release are based upon the Company's current expectations, beliefs, plans and assumptions, which are subject to a number of risks and uncertainties including, but not limited to: statements regarding the continued market acceptance of our 100 percent Microsoft-based business phone systems and call center solutions and our ability to successfully increase revenue and cash throughout the remainder of fiscal year 2013 and beyond. Actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

The forward-looking statements contained in this press release are also subject to unknown risks and uncertainties, including but not limited to, risks related to AltiGen's limited operating history. For a more detailed description of AltiGen's performance, please refer to AltiGen's audited Annual Report filed with the OTCQX over-the-counter market for the fiscal year ended September 30, 2012. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Forward-looking statements speak only as of the date the statement was made. The Company does not undertake any obligation to update any forward-looking statements.